MIRA INFORM REPORT

Report Date :

05.03.2013

IDENTIFICATION DETAILS

Name :	RAJHANS ALLOYS PRIVATE LIMITED
Registered Office :	Plot No.3985, GIDC Phase III, Village Dared, Jamnage-361004, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.10.2009
Com. Reg. No.:	04-058453
Capital Investment / Paid-up Capital :	Rs. 0.100 Million
CIN No.: [Company Identification No.]	U27109GJ2009PTC058453
TAN No.: [Tax Deduction & Collection Account No.]	RKTR02705D RKTR02558D
PAN No.: [Permanent Account No.]	AAECR5124M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Trader of Copper, Alloy and Brass
No. of Employees :	125 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (13)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 160000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company recently commenced with its commercial activities from May 2011. Trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	D (Long Term Rating)
Rating Explanation	Expected to be default soon
Date	February 2012

Rating Agency Name	CRISIL
Rating	D (short Term Rating)
Rating Explanation	In default or expected to be in default on maturity.
Date	February 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Sagar
Designation :	Accounts Manager
Contact No.:	91-288-2560111
Date :	27.09.2012

LOCATIONS

Registered Office :	Plot No.3985, GIDC Phase III, Village Dared, Jamnage-361004, Gujarat, India
Tel. No.:	91-288-2560111
Fax No.:	Not Available
E-Mail :	accounts@rajhans.com info@jainandmaharishi.com
Website :	www.rajhans.com

DIRECTORS

AS ON 29.09.2011

Name :	Mr. Ramniklal Keshavji Shah
Designation :	Director
Address :	“Sonil”, summair Club road, Jamnagar, Gujarat, India
Date of Birth/Age :	10.02.1942
Date of Appointment :	28.10.2009
DIN No.:	00004242
Name :	Mr. Milan Chandulal Dodhia
Designation :	Director
Address :	Milan, Opposite Jolly Bunglow, Summair Club Road, Jamnagar, Gujarat, India
Date of Birth/Age :	12.08.1961
Date of Appointment :	28.10.2009
DIN No.:	00158730
Name :	Mr. Kailashchandra Laxminarayan Mandawewala
Designation :	Director
Address :	Flat No.402,Ashutosh Apartments, Nirban Road, Opposite Guruduttatreya Temple, Jamnagar, Gujarat, India
Date of Birth/Age :	04.08.1943
Date of Appointment :	28.10.2009
DIN No.:	00660684
Name :	Mr. Nirav Jayendra Dodhia
Designation :	Director
Address :	Jasmine, Opposite Joly Bunglow, Jamnagar, Gujarat, India
Date of Birth/Age :	06.06.1982
Date of Appointment :	01.08.2011
DIN No.:	02781912

KEY EXECUTIVES

Name :	Mr. Sagar
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2011

Names of Shareholders	No. of Shares
Anuradha K. Mandawewala	58000
Arun R. Mandawewala	58000
Atul Kumar Shah/ Jyoti Shah	312500
Atulkumar Motichand Shah	312500
Chandrakant H. Savla	10000
Chandulal Raichand HUF	60000
Chandulal Raichand Shah	30000
Darshak C. Savla	30000
Darshan Nitin Savla	70000
Dhirajlal Karamshi Dodhia	25000
Dhirajlal Karamshi Dodhia HUF	60000
Girdharilal L. Mandawewala	58000
Hansa Dhirajlal Dodhia	270000
Harshil Dirajlal Dodhia	135000
Harshil Dirajlal Dodhia HUF	10000
Himesh R. Shah (HUF)	50000
Himesh Ramaniklal Shah	80000
Jasmin J. Dodhia (HUF)	150000
Jayendra K. Dodhia (HUF)	10000
Jayendra K. Dodhia	30000
Kailashchandra L. Mandawewala	65600
Kamalkumar L. Mandawewala	58000
Kumudben J. Dodhia	80000
Lilavantiben R. Shah	200000
Manisha Jasmin Dodhia	100000
Milan Chandulal Dodhia	303400
Milan Chandulal Dodhia (HUF)	90000
Minakshi Sonil Shah	50000
Navinchandra Nemchand Savla	92500
Nilesh Mohanlal Savla	127500
Nirav Jayendra Dodhia	70000
Nirav Jayendra Dodhia HUF	70000
Nitin Mohanlal Savla	127500
Parth Milan Shah	30000
Rajvee Shrenik Dodhia	20000
Rakhee Nirav Dodhia	150000
Ramaniklal K. Shah	218300
Rupal Himesh Shah	50000
Sarojben C. Savla	10000
Savitaben Velji	10000
Shrenik Chandulal Dodhia	70000
Shrenik Chandulal Dodhia (HUF)	100000
Siddharth Navinchandra Savla	127500
Sonil Ramaniklal Shah	80000
Sonil Ramaniklal Shah (HUF)	50000
Sushilaben Navinchandra Savla	82500
Sushilkumar G. Mandawewala	58000
Sweta Harshil Dodhia	30000
Vishal K. Mandawewala	58000
Vivek K. Mandawewala	58000
TOTAL	4455800

AS ON 25.06.2012

Names of Allottes	No. of Shares
Anuradha K. Mandawewala	38875
Arun R. Mandawewala	38875
Girdharilal L. Mandawewala	38875
Kailashchandra L. Mandawewala	34575
Kamalkumar L. Mandawewala	38875
Sushilkumar G. Mandawewala	38875
Vishal K. Mandawewala	38875
Vivek K. Mandawewala	38875
TOTAL	306700

AS ON 29.02.2012

Names of Allottes	No. of Shares
Chandulal Raichand Shah HUF	25000
Darsan Navinchandra Savla	60000
Dhirajlal Karamshi Dodhia HUF	25000
Jayendra Karamshi Dodhia HUF	50000
Navinchandra Nemchand Savla	35000
Nilesh Mohanlal Savla	2500
Siddharth Navinchandra Savla	2500
Sushilaben Navinchandra Savla	47500
TOTAL	247500

AS ON 29.09.2011

Equity Shares Break Up	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	14.05
Directors or relatives of Directors	85.95
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Trader of Copper, Alloy and Brass
Products :	Extrusion Rods
Exports :
Countries :	· USA
Imports :
Products :	· Raw Material
Countries :	· USA
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Suppliers :

· One Steel

Customers :

Wholesalers and Retailers

· Devi Turnomatics Private Limited

· Yarde Metal

No. of Employees :

125 (Approximately)

Bankers :

· State Bank of India, Near Digvijay Plot Police Station Gate, Besides Oswal Hospital, Digvijay Plot, Jamnagar-361005, Gujarat, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Term Loan
(Against Hypothecation of Plant and Machineries, Furniture and Fixtures, Equitable Mortgage of Factory Building, Equitable Mortgage of Land, Cash Collaterals by way of Deposits, Personal Guarantee of Directors and Corporate Guarantee of Rajhans Metals Private Limited)	90.922	0.000
TOTAL	90.922	0.000
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Unsecured Loan	63.515	0.000
TOTAL	63.515	0.000
Cash Credit and TL Limit Rs. 220.000 Millions

Banking Relations :	--
Auditors :
Name :	Maharshi and Company Chartered Accountant
Address :	“Aparna”, Behind Jeevandeep Hospitals, Off Indira Road, Limda Lane, Jamnagar-361001, Gujarat, India
Tel. No.:	91-288-2665023 / 2665024 / 2662637 / 2542491 / 2542492
Fax No.:	91-288-2661612
E-Mail :	info@jainandmaharishi.co
PAN No.:	AAPFM6568E
Related Parties :	· Rajhans Metals Private limited · INAC Brass Private Limited · Arun Impex Private Limited · Rajlaxmi Metals Private Limited

CAPITAL STRUCTURE

AFTER 29.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4455800	Equity Shares	Rs.10/- each	Rs. 44.558 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs. 0.100 Million

AS ON 29.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 50.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.100	0.100
2] Share Application Money		40.177	4.950
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		40.277	5.050
LOAN FUNDS
1] Secured Loans		90.922	0.000
2] Unsecured Loans		63.515	0.000
TOTAL BORROWING		154.437	0.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		194.714	5.050
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17.891	0.000
Capital work-in-progress		157.208	5.551
INVESTMENT		0.015	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.437	0.000
	Sundry Debtors	0.000	0.000
	Cash & Bank Balances	7.086	0.179
	Other Current Assets	0.000	0.000
	Loans & Advances	14.939	0.000
Total Current Assets		22.462	0.179
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.217	0.669
	Other Current Liabilities	0.227	0.016
	Provisions	0.024	0.000
Total Current Liabilities		3.468	0.685
Net Current Assets		18.994	(0.506)
MISCELLANEOUS EXPENSES		0.606	0.005
TOTAL		194.714	5.050

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2011	31.03.2010
IMPORTS
	Capital Goods	19.596	0.000
TOTAL IMPORTS		19.596	0.000

Particulars	31.03.2012
Sales Turnover (Approximately)	600.000

Expected Sales (2012-2013) : Rs. 1000.000 Millions

The above information has been parted by Mr. Sagar.

KEY RATIOS

PARTICULARS	31.03.2011	31.03.2010
Debt Equity Ratio (Total Liability/Networth)	3.92	0.14
Current Ratio (Current Asset/Current Liability)	6.48	0.26

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last one years	Yes
12]	Profitability for last three years	No
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

NOTE

Registered office has been shifted from 21/3, Shankar Tekri, Udyognagar, Jamnagar-361004, Gujarat, India to the present address w.e.f. 08.03.2011

DEVELOPMENT

The company has incurred expenditure of Rs. 175.099 Millions (Including Capital Advances paid to vendors) for extrusion plant project. The extrusion plant project has been completed and is in trial run period. To meet the financial requirement of the company it has borrowed the term loan from State Bank of India of Rs. 90.922 Millions. The company has received share application money of Rs. 40.177 Millions from the promoter group.

FORM 8

Corporate identity number of the company	U27109GJ2009PTC058453
Name of the company	RAJHANS ALLOYS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.3985, GIDC Phase III, Village Dared, Jamnage-361004, Gujarat, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	10273755
Type of charge	· Book debts · Movable property (not being pledge) · Others
Particular of charge holder	State Bank of India, Near Digvijay Plot Police Station Gate, Besides Oswal Hospital, Digvijay Plot, Jamnagar-361005, Gujarat, India
Nature of instrument creating charge	Letter of Renewal of Term Loan and Working Capital Agreement Dated 14/05/2012 Is Attached Herewith.
Date of instrument Creating the charge	14.05.2012
Amount secured by the charge	Rs. 254.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Margin A Fund Based Limits Raw Materials : Imported - 20%. Raw Materials : Indigenous - 20% Semi-Finished Goods - 20% Finished Goods - 20% Components/ Consumable/ Spares - 20% Domestic Receivables - 30% Export Packing Credit - 10% Term Loan - 61.53% B Non-Fund Based Limits Letters of Credit/ Buyers Credit - 25% By Way Of Bank's TDR Bank Guarantees - 25% Cash or TDR For Norma Cases. - 100% In case of guarantees issued for disputed cases/matters.
Short particulars of the property charged (Including location of the property)	Hypothecation of entire stock, debtors, plant and machineries, furniture and fixtures presently located at factory premises of the borrower.

TRADE REFERENCES

· Devi Turnomatics Private Limited

· Yarde Metal

· One Steel

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 55.05
UK Pound	1	Rs. 82.75
Euro	1	Rs. 71.61

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	--
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		13

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.